Tax cut foes miss the point

The Oklahoman Editorial
Our friends at the Alliance for Oklahoma's Future don't want to cut state income taxes. Understood. The group is composed of people who consume tax money, such as teachers and school administrators.

Our friends at the Community Action Project (CAP) in Tulsa, which is affiliated with the alliance, are playing the class warfare card in opposing Senate Bill 2022. Understood. The bill would cut taxes for the wealthiest Oklahomans. CAP is an advocate for the poorest Oklahomans and has no especial concern for growing the economy.

We share the alliance's desire to invest surplus revenues in, as a spokesman puts it, "areas where Oklahoma still lags behind." We share CAP's concern that Oklahoma's personal income tax system puts too much of a burden on lower-income citizens.

Where we depart from the alliance is in the nature of the investment. Investment in the future should include structuring a tax environment that attracts and retains people who create jobs and build the economy.

Tax cuts for the wealthy? One doesn't have to be wealthy to pay the top income tax rate in Oklahoma. CAP, drawing on an analysis from the liberal-leaning Institute for Taxation and Economic Policy, says SB 2022 would disproportionately benefit "the wealthy."

That's the point!

Those who pay the most taxes obviously would get more benefit from a tax cut. They would get even more of a benefit by moving to Texas, which has no personal income tax.

Should we encourage them to make that move or should we take a small step this year to make Oklahoma more attractive to entrepreneurs? The alliance and CAP apparently would have them move. We'd like to keep them.

If Texas gets too many of our best teachers because the pay is better, it follows that Texas will get more of our successful people because it rewards their success rather than envying it and overtaxing it.